Central Goods and Services Tax Act, 2017
Chapter X - Payment of Tax
Section 51 - Tax deduction at source
51. Tax deduction at source
(1) Notwithstanding anything to the contrary contained in this Act, the Government may mandate,-
(a) a department or establishment of the Central Government or State Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category of persons as may be notified by the Government on the recommendations of the Council,
(hereafter in this section referred to as "the deductor"), to deduct tax at the rate of one per cent. from the payment made or credited to the supplier (hereafter in this section referred to as "the deductee") of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees:
Provided that no deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory which is different from the State or as the case may be, Union territory of registration of the recipient.
Explanation .-For the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice.
(2) The amount deducted as tax under this section shall be paid to the Government by the deductor within ten days after the end of the month in which such deduction is made, in such manner as may be prescribed .
1-a[(3) A certificate of tax deduction at source shall be issued in such form and in such manner as may be prescribed .]1-a
(4) 1-b[****]1-b
(5) The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and reflected in the return of the deductor furnished under sub-section (3) of section 39 , in such manner as may be prescribed .
(6) If any deductor fails to pay to the Government the amount deducted as tax under sub-section (1), he shall pay interest in accordance with the provisions of sub-section (1) of section 50 , in addition to the amount of tax deducted.
(7) The determination of the amount in default under this section shall be made in the manner specified in section 73 or section 74 2[or section 74A]2.
(8) The refund to the deductor or the deductee arising on account of excess or erroneous deduction shall be dealt with in accordance with the provisions of section 54:
Provided that no refund to the deductor shall be granted, if the amount deducted has been credited to the electronic cash ledger of the deductee.
1-a. Substituted (w.e.f. 01.01.2021 Notification No. 92/2020-Central Tax dated 22.12.2020) vide Section 124 of the Finance Act, 2020 dated 27.03.2020 for
"(3) The deductor shall furnish to the deductee a certificate mentioning therein the contract value, rate of deduction, amount deducted, amount paid to the Government and such other particulars in such manner as may be prescribed. "
1-b. Omitted (w.e.f. 01.01.2021 Notification No. 92/2020-Central Tax dated 22.12.2020) vide Section 124 of the Finance Act, 2020 dated 27.03.2020 for
"(4) If any deductor fails to furnish to the deductee the certificate, after deducting the tax at source, within five days of crediting the amount so deducted to the Government, the deductor shall pay, by way of a late fee, a sum of one hundred rupees per day from the day after the expiry of such five days period until the failure is rectified, subject to a maximum amount of five thousand rupees. "
2. Inserted (w.e.f. 01-11-2024) vide Section 127 of the Finance Act (No.2), 2024 dated 16-08-2024.
Act
- Section 25 - Procedure for registration
- Section 20 - Miscellaneous transitional provisions
- Section 37 - Furnishing details of outward supplies
- Section 38 - Communication of details of inward supplies and input tax credit
- Section 39 - Furnishing of returns
- Section 44 - Annual return
- Section 50 - Interest on delayed payment of tax
- Section 73 - Determination of tax, pertaining to the period upto Financial Year 2023 24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any willful-misstatement or suppression of facts
- Section 74 - Determination of tax, pertaining to the period up to Financial Year 2023 24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any willful-misstatement or suppression of facts
- Section 122 - Penalty for certain offences
- Section 142 - Miscellaneous transitional provisions
- Section 54 - Refund of tax
- Section 24 - Compulsory registration in certain cases
Rules
- Rule 8 - Application for registration
- Rule 12 - Grant of registration to persons required to deduct tax at source or to collect tax at source.
- Rule 61 - Form and manner of furnishing of return
- Rule 66 - Form and manner of submission of return by a person required to deduct tax at source.
- Rule 80 - Annual return.
- Rule 85 - Electronic Liability Register.
- Rule 87 - Electronic Cash Ledger.
- Rule 9 - Verification of the application and approval
Notifications
- Notification No. 09/2017 - 28-06-2017 - Notification exempting supplies to a TDS deductor by a supplier, who is not registered, under section 8 (1)
- Notification No. 12/2017 - 28-06-2017 - To notify the exemptions on supply of services under UTGST Act
- Notification No. 13/2017 - 28-06-2017 - To notify the categories of services on which union territory tax will be payable under reverse charge mechanism under UTGST Act
- Notification No. 33/2017 - 15-09-2017 - Notifying section 51 of the CGST Act, 2017 for TDS
- Notification No. 50/2018 - 13-09-2018 - Seeks to bring section 51 of the CGST Act (provisions related to TDS) into force w.e.f 01.10.2018
- Notification No. 58/2018 - 26-10-2018 - Seeks to provide taxpayers whose registration has been cancelled on or before the 30th September, 2018 time to furnish final return in FORM GSTR-10 till 31st December, 2018
- Notification No. 61/2018 - 05-11-2018 - Seeks to exempt supply from PSU to PSU from applicability of provisions relating to TDS
- Notification No. 66/2018 - 29-11-2018 - Seeks to extend the due date for filing of FORM GSTR-7 for the months of October, 2018 to December, 2018
- Notification No. 28/2017 - 22-09-2017 - Seeks to amend notification no. 2/2017- Union Territory tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions
- Notification No. 29/2018 - 31-12-2018 - Seeks to amend notification No. 13/2017- Union Territory Tax (Rate) so as to specify services to be taxed under Reverse Charge Mechanism (RCM) as recommended by Goods and Services Tax Council in its 31st meeting held on 22.12.2018.
- Notification No. 73/2018 - 31-12-2018 - Seeks to exempt supplies made by Government Departments and PSUs to other Government Departments and vice-versa from TDS.
- Notification No. 08/2019 - 08-02-2019 - Seeks to extend the due date for furnishing of FORM GSTR-7 for the month of January, 2019 till 28.02.2019.
- Notification No. 18/2019 - 10-04-2019 - Seeks to extend the due date for furnishing FORM GSTR-7 for the month of March, 2019 from 10.04.2019 to 12.04.2019.
- Notification No. 26/2019 - 28-06-2019 - Seeks to extend the due date of filing returns in FORM GSTR-7
- Notification No. 40/2019 - 31-08-2019 - Seeks to extend the last date in certain cases for furnishing GSTR-7 for the month of July, 2019.
- Notification No. 55/2019 - 14-11-2019 - Seeks to extend the due date for furnishing of return in FORM GSTR-7 for registered persons in Jammu and Kashmir for the months of July, 2019 to September, 2019.
- Notification No. 78/2019 - 26-12-2019 - Seeks to extend the due date for furnishing of return in FORM GSTR-7 for registered persons in Assam, Manipur or Tripura for the month of November, 2019.
- Notification No. 22/2021 - 01-06-2021 - Seeks to rationalize late fee for delay in filing of return in FORM GSTR-7.
- Notification No. 02/2017 - 28-06-2017 - CGST exempt goods notified under section 11 (1)
- Notification No. 09/2017 - 28-06-2017 - Exempting supplies to a TDS deductor by a supplier, who is not registered, under section 11 (1)
- Notification No. 09/2017 - 28-06-2017 - To notify the exemptions on supply of services under IGST Act
- Notification No. 10/2017 - 28-06-2017 - To notify the categories of services on which integrated tax will be payable under reverse charge mechanism under IGST Act
- Notification No. 12/2017 - 28-06-2017 - To notify the exemptions on supply of services under CGST Act
- Notification No. 13/2017 - 28-06-2017 - To notify the categories of services on which tax will be payable under reverse charge mechanism under CGST Act
- Notification No. 25/2024 - 09-10-2024 - Seeks to amend Notification No. 50/2018-Central Tax dated 13.09.2018
- Notification No. 05/2025 - 10-01-2025 - Seeks to extend the due date for furnishing FORM GSTR-7 for the month of December, 2024
- Notification No. 23/2024 - 08-10-2024 - Seeks to provide waiver of late fee for late filing of NIL FORM GSTR-7
- Notification No. 52/2018 - 20-09-2018 - Seeks to notify the rate of tax collection at source (TCS) to be collected by every electronic commerce operator for intra-State taxable supplies
- Notification No. 57/2018 - 23-10-2018 - Seeks to exempt post audit authorities under MoD from TDS compliance
- Notification No. 29/2018 - 31-12-2018 - Seeks to amend notification No. 13/2017- Central Tax (Rate) so as to specify services to be taxed under Reverse Charge Mechanism (RCM) as recommended by Goods and Services Tax Council in its 31st meeting held on 22.12.2018
Orders
- Order No. Order No. 1/2018 - Central Tax - 11-12-2018 -
- Order No. Order No. 3/2018 - Central Tax - 31-12-2018 -
- Order No. Order No. 6/2019 - Central Tax - 28-06-2019 -
- Order No. Order No. 7/2019 - Central Tax - 26-08-2019 -
- Order No. Order No.8/2019 - Central Tax - 14-11-2019 -
- Order No. Order No. 10/2019 - Central Tax - 26-12-2019 -
